The housing market is accelerating as more Americans become approved for home loans, thanks to recent employment and rising credit scores.
Chicago, IL (PRWEB) December 11, 2014
Lenders like Peoples Home Equity, were pleased with today's announcement that mortgage applications increased 7.3% for the week ending on December 5th.
According to the latest Mortgage Bankers Association's "Weekly Application Survey" report, mortgage applications surged last week, but mostly due to refinance activity. The MBA's "Refinance Index increased 13 percent from the previous week." This was a notable increase as "the refinance share of mortgage activity increased to 64 percent of total applications from 60 percent the previous week." As for seasonally adjusted purchase loan activity, the rise was just 1%.
Peoples Home Equity, a mortgage lender with a large presence in the Midwest, knows the recent surge of applications is due to relatively lower interest rates versus levels experienced during late 2013 and early 2014.
The average contract interest rate on “0-year fixed-rate mortgages with conforming loan balances ($417,000 or less) increased to 4.11 percent from 4.08 percent, with points remaining unchanged from 0.28 (including the origination fee) for 80 percent loan-to-value ratio (LTV)."
On the other hand, "30-year fixed-rate mortgages with jumbo loan balances (greater than $417,000) decreased to 4.07 percent from 4.11 percent, with points decreasing to 0.16 from 0.22 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week."
FHA-backed 30-year fixed-rate mortgages rates "increased to 3.87 percent from 3.85 percent, with points decreasing to 0.03 from 0.09 (including the origination fee) for 80 percent LTV loans."
Then, "15-year fixed-rate mortgages increased to 3.35 percent from 3.30 percent, with points increasing to 0.30 from 0.25 (including the origination fee) for 80 percent LTV loans."
And finally, "5/1 ARMs increased to 3.11 percent from 3.07 percent, with points decreasing to 0.19 from 0.32 (including the origination fee) for 80 percent LTV loans."
Peoples Home Equity reminds readers that the housing market is accelerating as more Americans become approved for home loans, thanks to recent employment and rising credit scores. Now is an excellent time to purchase a home, especially since property values are expected to rise throughout 2015. Investment opportunities are still available across many markets.
If you are in need of a home loan, contact a Peoples Home Equity loan officer today at: 262-563-4026